Debt

Debt payoff calculator

Both methods keep your total monthly payment constant and roll each cleared debt’s minimum onto the next one. The only difference is the order. Sometimes that difference is worth thousands, and sometimes it is worth nothing at all — this page tells you which.

Your debts

Debt 1

Debt 2

Currency

Changes the symbol on your figures. It does not convert them — there is no exchange rate here.

Anything on top of the minimums. This is where the difference comes from.

Debt free in

Payoff order — avalanche
DebtBalanceAPRInterest paidCleared

This calculator needs JavaScript to recalculate. The figures above are a worked example, and every assumption behind them is written out below.

What this assumes

Both methods hold your total monthly payment constant. When a debt clears, its minimum does not return to your pocket — it rolls onto the next debt in the order. That rolling is the whole mechanism, and it is why an extra 200 a month clears everything years earlier rather than months.

Interest is charged monthly at APR divided by twelve, which is the credit card convention, so these figures should match your statement closely.

No new borrowing, no missed payments, and no change in rate. A variable rate or a promotional 0% period ending will both move the real answer.

Snowball or avalanche

Avalanche pays the highest interest rate first. It is always the cheaper of the two, mathematically, because it kills the most expensive money first.

Snowball pays the smallest balance first. It costs more in interest, sometimes considerably, and it is the one people are more likely to finish — because clearing an entire debt is a visible, motivating event, and the first one arrives quickly.

The honest position is that the best method is the one you actually complete. If avalanche saves you 300 over three years and snowball is the reason you stick with it, snowball is the better plan.

When they are the same

If your smallest debt also happens to carry the highest rate — which is common, because credit cards are usually both — the two methods produce an identical order and an identical cost. The comparison above will say so rather than manufacturing a difference.

Before you start

Two things are usually worth doing first. Put a small emergency fund in place, or the next unexpected bill goes straight back onto the card you are clearing. And check whether a balance transfer at 0% is available to you — a year of no interest beats any ordering strategy.

Common questions

Which is better, snowball or avalanche?
Avalanche is always cheaper in interest. Snowball has better completion rates in behavioural research, because clearing a whole debt early provides visible progress. Run both above: if the gap is small, take the one you will finish; if it is large, the arithmetic deserves more weight.
Why do both methods sometimes give the same answer?
Because they produce the same order. If your smallest balance is also your highest rate, both methods target it first, and every subsequent step matches too. This is common with credit card debt and it is not an error.
Should I pay off debt or invest?
Compare the interest rate to the return you would expect. Paying off a 22% card is a guaranteed 22% return, which no investment reliably offers. Below roughly 6%, especially on a mortgage, investing often wins. Between the two it is closer, and the certainty of the debt payoff has real value.
What if I cannot afford the minimums?
Then this calculator will tell you the plan is not viable rather than showing an impossible schedule. That is a situation for a free debt advice service — in the UK, StepChange or Citizens Advice; in the US, an NFCC-member credit counsellor. Contact them early, because options narrow after a default.

The app this comes from

The extra payment has to come from somewhere

Everything on this page is driven by one figure: what you can put in on top of the minimums. That money is almost always already being spent, in small amounts, on things that would not be missed — which you can only act on once you can see them.

Not out yet. TLDR Money International is in build for the United States and the United Kingdom first, on iPhone and Android. There is nothing to download and nothing to sign up to — when there is, this page will say so.

Last reviewed 20 August 2026. The arithmetic behind this page is covered by automated tests that run on every deploy.